The predominant message on [last] evening’s conference call is that recruitment trends have shown some incremental stabilization and are no longer getting worse. This trend change combined with continued vigilance on the cost side has given management the confidence to raise its full year outlook $0.125 at the midpoint, to a new range of $1.45-$1.70. We note this compares favorably to the current FactSet consensus of $1.40. Cash flow of $83M in the quarter was solid, which should help alleviate some concerns on the upcoming ~$300M debt payment due in 2016. With expectations very low heading into the quarter (as exhibited by high short interest), we expect these results will give the shares a boost in tomorrow’s trading. While the
company is far from out of the woods in the intensifying competitive landscape, we are somewhat encouraged that the initial steps management is taking to redefine the offering are gaining some traction.

Shares of Weight Watchers were down 40% this year at yesterday’s close, while NutriSystem had fallen 7.7% and Medifast had gained 21%.

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MAY 4, 2014 6:50 P.M.

John LaRosa, Marketdata Enterprisses Research Director wrote:

Sounds like a few positives finally, especially increased exposure to Brazil market. However, one thing still bothers me. Why isn't anyone asking about the status of WTW's 10,000 group leaders? They're on of the company's primary assets and deal with customers every day. Remember about 6 months ago there was a small rebellion over low pay and long hours? Well, what happened? Are leaders happy now with their pay? Also, what percentage of the 10,000 are minorities? What's the avg. age? And why are NO analysts asking these questions? Maybe someone needs to "disrupt" the analyst community - all they ask are financial questions but not questions related to marketing, competitors. And for this these guys get paid $300-500K+ per year? Wow, something's wrong with this system. What are they afraid of? Also, has WTW collected any solid PROOF (focus groups, customer surveys, etc.) that apps are the MAIN factor impacting meeting attendance and declining revenues? Let's see it? I'm still not convinced. And, did I hear correctly when mgmt. said that bad weather in Q1 really had no effect on business? REALLY? The Midwest and Northeast got pounded with snowstorm after storm in Jan. & Feb., just at the start of the "diet season", making it impossible to get to work let alone a WW meeting. And this had no effect? Seriously?

MAY 4, 2014 6:51 P.M.

J. LaRosa, Marketdata Enterprises wrote:

Sounds like a few positives finally, especially increased exposure to Brazil market. However, one thing still bothers me. Why isn't anyone asking about the status of WTW's 10,000 group leaders? They're on of the company's primary assets and deal with customers every day. Remember about 6 months ago there was a small rebellion over low pay and long hours? Well, what happened? Are leaders happy now with their pay? Also, what percentage of the 10,000 are minorities? What's the avg. age? And why are NO analysts asking these questions? Maybe someone needs to "disrupt" the analyst community - all they ask are financial questions but not questions related to marketing, competitors. And for this these guys get paid $300-500K+ per year? Wow, something's wrong with this system. What are they afraid of? Also, has WTW collected any solid PROOF (focus groups, customer surveys, etc.) that apps are the MAIN factor impacting meeting attendance and declining revenues? Let's see it? I'm still not convinced. And, did I hear correctly when mgmt. said that bad weather in Q1 really had no effect on business? REALLY? The Midwest and Northeast got pounded with snowstorm after storm in Jan. & Feb., just at the start of the "diet season", making it impossible to get to work let alone a WW meeting. And this had no effect? Seriously?

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